Marketing Chapter 7

Derek bought a pick-up truck to transport his equipment to fishing tournaments. He also bought a pick-up
for his lawn maintenance business. His purchases were
A. both B2C purchases since he is the user in both situations.
B. both B2B purchases since he is the user in both situations.
C. neither B2C nor B2B since he is the consumer and his uses might be mixed.
D. B2C and B2B, respectively.
E. B2B and B2C, respectively.

D

Jackie works as a sales rep for a company that produces and sells steel used in building construction.
Jackie is in __________ sales.
A. G2B
B. B2C
C. B2B
D. C2C
E. G2G

Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the
issuance of new home permits to anticipate how many appliances she will need to buy in order to supply
her customers. Paula is concerned with __________.
A. modified demand
B. secondary demand
C. rebuy demand
D. derived demand
E. delayed demand

Unlike manufacturers, __________ buy products from other businesses but do not significantly alter the
form of the products they buy.
A. producers
B. consumers
C. resellers
D. English auctioneers
E. gatekeepers

C

A __________ is a type of reseller, a business that buys from other businesses but does not significantly
alter the form of the products it buys.
A. manufacturer
B. producer
C. consumer
D. wholesaler
E. factory

Which of the following is an example of an institutional buyer?
A. Mayo Clinic Hospital
B. Procter & Gamble
C. U.S. Marine Corps
D. Nucor Steel Corporation
E. Walmart

A

Which of the following is an example of a government buyer?
A. Mayo Clinic Hospital
B. Procter & Gamble
C. U.S. Marine Corps
D. Nucor Steel Corporation
E. Walmart

C

In most countries, __________ is one of the largest purchasers of goods and services.
A. the largest retailer
B. the central government
C. the national airline
D. the intelligence agency
E. a consumer buying center

Compared to the B2C process, the information search and alternative evaluation steps in the B2B process
are
A. decentralized.
B. less focused on customer value creation.
C. identical.
D. more formal and structured.
E. based on derived supply analysis.

When Goodwish Marketing decided to upgrade its network, many people were involved in the decision.
In B2B buying systems decisions are often made
A. quickly.
B. by a single expert.
C. at auction sites.
D. by a committee after considerable deliberation.
E. through community debating organizations.

Judy knows it is important to approach business buyers at the right time, which is often during the first
stage of their buying process. She stays in touch with her customers, hoping to find out when they are
going through
A. need recognition.
B. the RFP process.
C. proposal analysis.
D. vendor negotiation and selection.
E. product specification.

A

Edward, the leading salesperson for Harry’s Honda dealership, began hearing customers asking for hybrid
automobiles several years ago. Edward alerted Harry, and Harry preordered many Honda hybrids before
they became available. In this case, the source of need recognition was
A. trade show demonstrations.
B. ads in trade journals.
C. customers.
D. the Internet.
E. suppliers.

After Hurricane Katrina, many states reevaluated their coastal area building requirements. These
new building codes represented __________ that building materials companies used to develop new
products.
A. derived demand
B. initiator instructions
C. determinant products
D. product specifications
E. focal alternatives

D

Charlie is hoping to get a chance to bid on supplying key components to Ned’s business. He is eager to
move forward, but he must wait until
A. Ned completes vendor negotiations.
B. Ned develops a list of product specifications.
C. Ned’s buying center has an opening.
D. Ned agrees to move Charlie’s firm from the evoked set to the retrieval set.
E. Ned completes the order specification process.

During the RFP stage, B2B buyers
A. recognize obstacles that the firm must work around.
B. revise their need recognition analysis.
C. invite suppliers to bid on supplying what is requested.
D. proceed to vendor analysis.
E. negotiate contract terms.

C

Frequently a B2B buyer will post its RFP
A. on Twitter.
B. in Commerce Business Daily.
C. in the legal section of a local newspaper.
D. on its website.
E. in the employee human resources office.

D

After posting an RFP for telecommunication equipment, USF Corporation received six proposals from
qualified vendors. Next, USF will
A. recognize obstacles that must be circumvented.
B. reevaluate the firm’s needs.
C. give one vendor a purchase order.
D. conduct vendor analysis.
E. evaluate the proposals and narrow the choice to a few suppliers.

E

The buying center for USF Corporation is in the process of discussing price, quality, and delivery
schedules with potential suppliers. They are in the __________ stage of the business-to-business buying
process.
A. vendor negotiation
B. product specification
C. need recognition
D. vendor performance assessment
E. RFP

A

When reviewing her firm’s business buying process, Carla noticed a company requirement that they have
at least three qualified bids from suppliers for any purchase over $50,000. This requirement is designed
to
A. minimize competitive pressure.
B. efficiently organize resellers.
C. encourage the bidders to offer their best deals.
D. foster democratic buying centers.
E. slow down the purchase process.

C

Frieda has just received a major order from Northrop Corporation for her firm’s hydraulic lift equipment.
After reviewing the order information, Frieda will
A. send an acknowledgement that the order has been received.
B. rewrite her firm’s proposal.
C. submit a competitive bid.
D. proceed to vendor analysis.
E. evaluate performance.

As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance
analysis every three months. To meet this requirement, Carrie will probably
A. interview vendors and seek their feedback.
B. specify and weight performance factors and score the vendors.
C. develop an RFP for vendor analysis.
D. recruit new suppliers.
E. use a modified rebuy vendor form.

B

In most large organizations, several people are responsible for making a purchase decision. This group is
called the
A. derived demand cohort.
B. reselling team.
C. decider group.
D. buying center.
E. expediters.

D

Which of the following is NOT one of the roles typically played by one of the members of a buying
center?
A. Auctioneer
B. Initiator
C. Influencer
D. Decider
E. Gatekeeper

A

Melanie is the director of human resources for a small manufacturing firm. She has a strong personal
interest in technology, and is known throughout the firm as one of the first to hear about and use new
kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably
function in what role in the firm’s buying center?
A. Auctioneer
B. Initiator
C. Influencer
D. Decider
E. Gatekeeper

C

Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom’s
engineers have been asked to provide detailed specifications and recommendations for the equipment
needed. The Raycom engineers will primarily play the __________ role in the company’s buying
center.
A. buyer
B. initiator
C. influencer
D. user
E. gatekeeper

C

At many universities, education faculty members were among the first to ask for personal computers.
These faculty members were __________ in the buying center.
A. buyers
B. initiators
C. influencers
D. deciders
E. gatekeepers

B

Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. After a
vendor is chosen, Reginald will handle the paperwork and send out the purchase order. Reginald plays the
__________ in the buying center.
A. buyer
B. initiator
C. influencer
D. user
E. gatekeeper

A

Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at
General University, her first stop is to chat with Frank, the business department secretary. From Frank,
Kim learns which professors have left the university or are newly arrived. Frank also helps Kim to make
appointments to see professors to discuss textbook choices. Frank acts as the __________ in the business
department buying center.
A. buyer
B. initiator
C. influencer
D. user
E. gatekeeper

E

Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at
General University, she also tries to meet with several students to get their feedback on textbooks. She
passes this feedback to her managers to guide the development of the publisher’s future textbooks. The
students are the __________ in the buying center.
A. deciders
B. initiators
C. influencers
D. users
E. gatekeepers

D

Many health insurance policies require patients to call and get preapproval for tests or procedures. The
health insurance company acts as a __________ for the purchase of these medical services.
A. decider
B. initiator
C. influencer
D. user
E. gatekeeper

E

Unlike a firm’s mission statement or employee handbook, a firm’s culture often
A. forces customers to look elsewhere for value.
B. is of no importance to purchase decisions.
C. exists as a set of unspoken guidelines.
D. is defined by a straight rebuy philosophy.
E. determines the order specification process.

While no one in the firm has discussed it, Brad notices everyone else seems to dress more casually on
Fridays during the summer. Brad is observing part of his firm’s
A. culture.
B. governing principles.
C. human resources policy.
D. employee obligations.
E. gatekeeping.

A

While training for her new job as a pharmaceutical sales representative, Mallory spent several days
shadowing an experienced company rep. She watched the rep focusing on the benefits of the new drugs
while not volunteering pricing information, side effects, or comparison data. Mallory assumed that this
reflected part of the pharmaceutical firm’s
A. buying center.
B. culture.
C. mission statement.
D. corporate social responsibility.
E. RFP process.

B

Which of the following is NOT one of the four general types of organizational cultures?
A. autocratic
B. democratic
C. consultative
D. capitalist
E. consensus

D

The customer Carlotta is calling on today has a(n) __________ buying center culture. This means that the
decision process will involve reaching agreement among all members of the buying center.
A. consensus
B. autocratic
C. consultative
D. republican
E. democratic

A

Markham Publishing is known for its consultative buying center culture. Recognizing this corporate
culture, someone attempting to sell to Markham Publishing should
A. treat all members of the buying center as equally important.
B.
address the concerns of all members of the buying center with particular attention to those of the
decision maker.
C. focus on providing information to and making the sales approach to the one decision maker.
D. attempt to facilitate the collective agreement of all members of the buying center.
E. focus attention on the gatekeeper in the buying center’s team.

B

Fordham Hardware is known for its consensus buying center culture. Recognizing this corporate culture,
someone attempting to sell to Fordham Hardware should
A. focus exclusively on the head of the buying center.
B.
address the concerns of all members of the buying center with particular attention to those of the
decision maker.
C. focus on providing information to and making the sales approach to the one decision maker.
D. attempt to facilitate the collective agreement of all members of the buying center.
E. attempt to get one “friend” on the committee to support his products.

D

At the main campus of a large university, faculty always refer to each other as Doctor, wear suits, and
guard their academic domains against each other. This leads to frequent name-calling and strenuous
debates. Meanwhile, at the various branch campuses, faculty members call each other by their first
names, dress casually, and supported each other’s scholarly efforts. This example illustrates the
differences in __________ that can exist within an organization.
A. supply chain communication
B. autocratic buying center culture
C. organizational culture
D. business missions
E. corporate social responsibility

C

Not knowing the roles of key players in the buying process could cause a sales representative to
A. bid too high a quantity.
B. fail the vendor analysis.
C. respond to an RFP too quickly.
D. waste time and alienate people.
E. misdirect his or her product.

D

When Leanne gave her presentation to the BigDeal discount buying center team, she treated each
member’s question seriously and gave equal time to addressing each. Leanne did not realize BigDeal has
an autocratic buying center culture and she needed to focus on answering Beverly’s questions, since she is
the decision maker. In addition to wasting time by not understanding BigDeal’s culture, Leanne may have
also hurt her chances because she
A. bid too many products.
B. failed the vendor analysis.
C. responded to the RFP too quickly.
D. alienated Beverly, the real decision maker.
E. offended the nondecision makers by assuming they had more power than they did.

D

Jenny was feeling frustrated. “What’s taking them so long to make a decision? It’s been weeks since I first
met with them, and they all seem interested in the product. I’ve also jumped through all their paperwork
hoops.” Jenny is likely selling to a firm in what kind of buying situation?
A. New buy
B. Modified rebuy
C. Straight rebuy
D. Generic buy
E. Adapted buy

Olga is the sales rep for ATV Communication Systems. She wants to bid on the RFP issued by Manitoba
University for distance learning technology. She knows she will need to provide considerable information
and demonstrations of her firm’s technology because Manitoba University is in a new buy situation and
does not have
A. the money to afford it.
B. any experience with the product they wish to purchase.
C. anyone interested in the technology.
D. any derived demand for the system.
E. any students who might be interested in distance learning.

B

When Natasha took over as facilities manager for Burlington Furniture Manufacturing, she was shocked
to see the factory was still heated with a coal-fired boiler. She made an immediate decision to upgrade
the heating system to something more efficient, and began to research available options. For Natasha and
Burlington Furniture, this represented a(n) __________ situation.
A. adapted buy
B. modified rebuy
C. straight rebuy
D. generic buy
E. new buy

E

In a(n) __________ situation, the buyer has purchased a similar product in the past but has decided to
change some specifications.
A. new buy
B. modified rebuy
C. straight rebuy
D. adapted buy
E. generic buy

B

When a business buyer decides to change specifications such as quality or options associated with
products purchased in the past, the buyer is engaged in a(n) __________ situation.
A. new buy
B. modified rebuy
C. straight rebuy
D. adapted buy
E. side by side

In a modified rebuy situation, __________ are likely to have an advantage in getting the order.
A. consumers
B. resellers
C. current vendors
D. gatekeepers
E. buying centers

C

When Val sees the RFP issued by one of his customers, he is concerned that they have changed their
specifications since they placed a previous order with him. His company’s products do not meet the new
specifications. In this situation, being the current vendor
A. will necessitate renegotiating price and delivery terms.
B. allows for a straight rebuy.
C. offsets a consensus buying center culture.
D. will probably not be an advantage in getting the new order.
E. will allow Val to get the order even though his products do not meet the specifications.

If a B2B customer is satisfied with an existing supplier, it will probably engage in a(n) __________ to
purchase additional quantities of the item.
A. new buy
B. modified rebuy
C. adapted buy
D. straight rebuy
E. generic buy

D

Yvonne uses her customer relationship management (CRM) system to predict when her business
customers will need more of her company’s packaging materials. When she thinks a customer should be
ready to make another order, she contacts them. Yvonne is using CRM to encourage customers to engage
in a(n)
A. new buy.
B. modified rebuy.
C. adapted buy.
D. straight rebuy.
E. generic buy.

D

Phil put down the phone and told Alice, “I just love that customer. I got another big order, and they just
keep on coming.” Phil is likely selling to a firm in what kind of buying situation?
A. New buy
B. Modified rebuy
C. Straight rebuy
D. Generic buy
E. Adapted buy

C

When a business customer engages in a straight rebuy, the member of the buying center most likely to be
involved in the purchase is the
A. decider.
B. initiator.
C. influencer.
D. user.
E. buyer.

The three types of buying situations
A. create confusion among B2B sellers.
B. suggest that B2B sellers should develop one marketing mix to use for all situations.
C. require business sellers to be consistent in their marketing mixes.
D. are theoretical and have little relation to what happens in the real world.
E. call for different marketing and selling strategies.

E

The __________ situation usually involves more members of a buying center and involves more time to
complete than the other buying situations.
A. modified rebuy
B. new buy
C. adapted buy
D. straight rebuy
E. generic buy

The office policy and procedure states that any purchase requests that are $3,000 and over must be given
to Ms. Reynolds, who will obtain authorization from the Chief Financial Officer. Ms. Reynolds serves as
a __________ in the buying center.
A. gatekeeper
B. decider
C. buyer
D. user
E. initiator

A

The president of the Northwoods University student body made a formal request to the IT department
for additional computers in the main computer lab. The student body president is the __________ in the
buying center.
A. initiator
B. gatekeeper
C. decider
D. buyer
E. gateway

A

The Northwoods University IT department is planning to buy additional computers for the computer lab.
Pedro Bechara, manager of the lab, is asked for a recommendation, and he suggests buying Macintosh
computers instead of Windows PCs. What role does Pedro play in the buying center?
A. Influencer
B. Gatekeeper
C. Decider
D. Buyer
E. Initiator

A

Bob Roberts founded Robertico, an equipment leasing company, three decades ago. Although he is now
in his seventies, he still has a “hands on” management style. His employees have learned that there isn’t
much point in making purchase recommendations for new equipment, because Bob is going to choose
whatever he thinks is best regardless of their views. Robertico has a(n) __________ buying center
culture.
A. autocratic
B. democratic
C. consultative
D. consensus
E. bureaucratic

The local skydiving team is buying new parachutes. The team’s coach has invited all team members to
make recommendations, after which he will select the successful vendor. The skydiving team’s buying
center has a(n) __________ organizational culture.
A. democratic
B. consultative
C. consensus
D. autocratic
E. bureaucratic

The chair of the board of the local Humane Society chose the bank where the organization keeps its
money; however, the office manager is the primary person who makes deposits, writes checks, and
balances the account every month. The office manager is the __________ in the buying center for the
bank account.
A. user
B. decider
C. gatekeeper
D. initiator
E. influencer

A

B2B partners often connect to each other on the Internet through special __________ designed to
facilitate information exchanges and transactions.
A. web portals
B. webmasters
C. web links
D. web hosts
E. gatekeepers

What type of B2B organization is a retail store such as T.J. Maxx?
A. Reseller
B. Institution
C. Government
D. Manufacturer
E. Internet

A

Which of the following details is/are included in the order specification stage of the B2B buying process?
A. Prices and delivery dates
B. Vendor performance assessment
C. The RFP
D. Bids for supplying the required components or parts
E. Vendor selection

A

Firms typically repurchase office supplies (paper, ink cartridges, pens, etc.) through straight rebuys
on their supplier’s website. Should an office supplies sales rep stay in close touch with his/her current
customers, and why or why not?
A. No; this is a waste of time since straight rebuys are straightforward and easy to handle.
B. No; the sales rep should be looking for new customers instead.
C. Yes; straight rebuys require a lot of the sales rep’s assistance.
D. Yes; the sales rep might learn about a new opportunity in the need recognition stage.
E. Yes; history has shown that online reordering can’t be trusted.

D

Suppose that Volkswagen is preparing an RFP for a hands-free phone connection for a new car model.
Which of the following would you NOT expect to find in the RFP?
A. A description of the required features for the device.
B. A time frame when the devices are needed.
C. Specifications for connecting the device to the car.
D. A vendor analysis.
E. Instructions for preparing proposals.

D

Because they do so much driving while visiting doctors’ offices and hospitals, pharmaceutical sales
representatives are often given company cars to drive. When a pharmaceutical company like Merck is
preparing to purchase new company cars, sales reps’ feedback will be sought on car models and features,
but the final decision will be made by higher levels of management. What role(s) do the sales reps play in
the buying center?
A. Users
B. Initiators
C. Influencers
D. Users and influencers
E. Users and initiators

D

Kimberly has just learned that Caribou Coffee is looking for a new source of commercial-grade coffee
makers, one of the products she sells. She knows Caribou has been in business for many years, but she
has not been able to get any business from them. When developing her marketing strategy, Kimberly will
probably assume that this represents a __________ situation for Caribou Coffee, and she will want to find
out why Caribou is considering alternatives.
A. adapted buy
B. new buy
C. modified rebuy
D. straight rebuy
E. generic buy

C

Normally, BC bottling company attaches plastic labels to its bottles. However, a new company is
launching a product that requires the use of fabric labels. In order to use this latest innovation, BC
bottling company must now source these fabric labels from another company. This is an example of
A. a modified rebuy situation.
B. vendor analysis.
C. need recognition.
D. a straight rebuy situation.
E. an RFP.

C

Which of the following is NOT true about web portals?
A. Small companies use them to attract more attention to their purchasing needs.
B. Many specialty portals have been created to serve specialized needs.
C. Portals are strictly for buying and selling tangible products.
D. They can save companies money and reduce paperwork.
E. All of these statements are true about web portals.

C

CA Technologies, a firm providing software and services to information technology departments,
maintains a corporate blog. How can this blog help CA Technologies with B2B marketing?
A. As a place to post responses to RFPs.
B. By building brand awareness among potential customers.
C. By simplifying vendor performance assessment.
D. By streamlining purchasing and distribution.
E. By matching buyers’ requests and sellers’ offers.

B

Jackson owns a bike rental business at a resort destination. He is trying to decide how many new bikes to
purchase for next season. What will demand for his service depend on?

Demand for bike rentals will depend on demand for the resort destination. As such, Jackson faces derived demand.

Michelin Tire Company produces a variety of tires at factories in South Carolina. In what types of B2B
markets would Michelin probably sell their tires?

They would sell to automobile manufacturers, resellers including tire store chains, and possibly to government through specialty military
purchases.

Warren used to sell cars at an automobile dealership. Now he sells repossession services to automobile
dealers. To be successful, what changes in the buying process will Warren have to adjust to?

Warren has moved from B2C sales to B2B sales. In general, B2B sales are more formal and structured. He will probably have to provide
more information in writing, deal with different types of buying centers, and respond to formal vendor analysis.

How does the need recognition stage differ between the B2B and the B2C buying processes?

In B2B buying, need recognition may come from consumers’ comments, suppliers’ information, tradeshow demonstrations, or trade journals.
Consumers’ need recognition is typically initiated by an unfulfilled need or desire, while business need recognition often originates from external
sources.

Ellen is asked to create a vendor analysis process for a physician in private practice, evaluating suppliers
of products such as medical supplies. What should Ellen include in a vendor analysis?

Answers will vary but should include:
* A set of criteria for retaining or replacing vendors.
* A system for summarizing and presenting results.
* A data collection process including how, when, and how often vendor analysis will be conducted.
* Weighting of the issues or criteria by importance.
* The issues or criteria important to the physician and his or her staff.

Create a realistic example of a B2B buying center, describing the different roles played by members of
the team.

Answers will vary but should include the six roles: initiator, influencer, decider, buyer, user, and gatekeeper.

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